Got a spare $500 to invest in a top S&P/ASX 200 Index (ASX: XJO) dividend stock?
Then I suggest checking out ASX 200 bank stock Australia and New Zealand Banking Group Ltd (ASX: ANZ).
ANZ shares have long been popular among passive income investors for their lengthy track record of reliably paying two dividends per year. Even during the pandemic addled year of 2020.
Atop that welcome passive income, I also like buying into strength. And the ASX 200 dividend stock has been rewarding investors with outsized share price gains this year as well.
The ANZ share price closed at $29.81 on Friday, notching new 52-week highs. Shares could retest that record today. After slipping on Monday and edging higher yesterday, ANZ stock is up 1.5% in afternoon trade today at $29.74 a share.
That puts shares in the big four bank up more than 27% in 12 months.
Not including those dividends, which we'll get to shortly!
And there could be more outperformance from the ANZ share price to come in 2024.
With inflation in Australia slowly returning to the RBA's target range, we could see several interest rate cuts in the second half of the year. That could help ANZ increase its earnings if management decides not to pass the full rate reductions on to the bank's borrowers.
So, how about that passive income?
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One ASX 200 dividend stock to buy for passive income
Getting back to those juicy dividends, ANZ paid a fully franked interim dividend of 81 cents per share on 3 July. The bank paid a final dividend, franked at 56%, of 94 cents per share on 22 December.
That puts the full-year payout from this top ASX 200 dividend stock at $1.75 a share, partly franked.
At the current ANZ share price, that equates to a trailing yield of 5.9%.
With $500, you could buy 16 shares today, with enough left over for a pizza dinner. Based on the trailing yield that would see you earn $28 in annual passive income alongside the potential for further share price gains.
Lacking a crystal ball, I can't say with certainty what the future passive income payouts will be from this ASX 200 dividend stock. But as outlined above, I think the earnings outlook for ANZ looks strong in 2024, which should support dividends.
We'll know precisely what the next interim dividend payment will be on 7 May, when ANZ reports its half-year results.
As always, you should do your own thorough research before investing in any product, including this leading ASX 200 dividend stock.
If you're not comfortable with that or simply don't have the time, then reach out for some expert advice.
